An unusual and educational year
In 2020, the pandemic hit the HoReCa industry incredibly hard, which had a negative impact on us. Our more long-term strategic efforts to increase growth had to partially take a back seat to operational efforts to transition as quickly as possible. We responded quickly and did a good job of cutting costs while also meeting new customer needs, primarily in hygiene and takeaway.
In March 2020, it became clear that the pandemic was not merely a product supply challenge as we thought at first but a real, full-blown crisis. This was a completely new situation for the Group. And we needed to respond quickly.
THE YEAR IN BRIEF
A year we will
THE ATLANTIS BOWL CONCEPT WINS SUSTAINABLE DESIGN AWARD
Pentawards is the world’s leading packaging design award. Atlantis won silver in the “Sustainable design” category.
STRONGER FOCUS ON DUNI AND BIOPAK BRANDS
In January, a new organizational structure was presented with a focus on the Duni and BioPak brands. This change also results in new segment reporting. The new structure will be further strengthened as of January 1, 2021.
ROBERT DACKESKOG NEW PRESIDENT AND CEO
In August, it was decided that Robert Dackeskog will serve as President and CEO effective January 1, 2021.
A TURBULENT YEAR
Q1 – A strong start to the year. Q2 – COVID-19 hits and we go in the red. Q3 – Strong gains as markets reopen. Q4 – A second COVID-19 wave moves in and closes most markets again.
OPERATING MARGIN, %
The operating margin was 3.3 (9.6) percent
NET SALES, SEKm
Net sales decreased to SEK 4,501 m (5,547)
OPERATING INCOME, SEKm
Operating income was SEK 149 m (533)
The board proposes to the Annual General Meeting that no dividend be paid for the 2020 financial year. The dividend for the 2019 financial year was also canceled due to COVID-19.
KEY FINANCIALS, SEK M
|Operating income*, SEK m||Operativt resultat*||149||533||430||491||502|
|Operating EBITDA*||Operativt EBITDA*||374||762||583||630||632|
|Net income before tax||Resultat före skatt||7||377||328||439||441|
|Net income for the year||Årets resultat||4||273||249||334||334|
|Proposed dividend, SEK/Share||Föreslagen utdelning SEK/Aktie||0.00||5.00||5.00||5.00||5.00|
|Return on equity, %||Avkastning på eget kapital, %||0.1%||10.3%||9.5%||12.9||13.4|
|Return on capital employed, %||Avkastning på sysselsatt kapital, %||3.9%||12.9%||10.6%||14.4||15.8|
|Number of employees||Antal anställda||2,269||2,398||2,477||2,362||2,279|
NET SALES AND OPERATING INCOME, SEK M
DUNI GROUP AT A GLANCE
We create Sustainable Goodfoodmood® globally
Duni Group is one of Europe’s leading suppliers of inspiring concepts for the set table and creative, environmentally-sound single-use products for food and drink. Our offering has high-quality products, such as napkins, table covers, candles and other table top accessories, along with packaging and packaging systems for the growing take-away market. All of the company’s concepts are aimed at creating Sustainable Goodfoodmood® – an elevated meal experience – in environments where people get together to enjoy food and drink.
|NorthEast, 19 %||19|
|Central, 30 %||30|
|West, 13 %||13|
|South, 8 %||8|
|RoW, 25 %||25|
|Other Sales, 5 %||5|
Two different brands make our offering clearer
In 2020, Duni Group’s business was divided into two segments – Duni and BioPak, based on the Group’s brands. As of January 1, 2021, the two brand segments will form two business areas: Duni and BioPak. Each business area will have full responsibility for its respective value chain.
The Duni brand stands for design, color, shape, and high quality that creates a pleasant atmosphere on every meal occasion. The segment markets products and services that add value everywhere where people cook, serve and enjoy food and drink.
The BioPak brand was created by the idealists of Australian company BioPak Pty Ltd, which has been a part of the Group since 2018. The brand began to be launched in Europe in 2020 with the aim of becoming the hands-down choice for environmentally-sound meal packaging, which is exactly what it already is in its home market of Australia and New Zealand.
New opportunities on a changing market
The 2020 pandemic changed the playing field in ways no one could have foreseen. Our primary target group, the HoReCa sector, was hit very hard. At the same time, takeaway increased significantly and hygiene became a key priority for customers. The digitalization of ways of working and communicating accelerated. The changes we have seen during the year will continue to impact the market.
Strategy strengthens our position
At the end of 2018, a platform for profitable growth during the period from 2019 to 2023 was launched. This platform lays the foundation for an even more sustainable and customer-centric organization in line with the external trends and changes shaping our market.
Duni Group’s shares
During 2020, the share price decreased by 17 %, with a closing price of SEK 107.80 (129.20) at December 31, 2020. Since listing, Duni’s share price increased by 116 % until December 31 2020, resulting in a market capitalization of SEK 5.1 billion. During 2020, the closing price varied between a high of SEK 147.60 on February 21 and a low of SEK 62.30 on March 23. Earnings per share for the year were SEK 0.05 (5.73).